The typical family of four with at least one member in worse health and individual market or exchange coverage spends $20,450 per year (26% of their $79,630 income) on health.

Direct Spending on Healthcare

The typical family of four with at least one member in worse health and individual market or exchange coverage spends $20,450 per year (26% of their $79,630 income) on health. This includes $9,250 (12% of their income) in out-of-pocket health spending, $7,700 (10% of their income) in health insurance premiums, and approximately $3,500 (4% of their income) in state and federal taxes that fund health programs.

Additional Contributions by Employers

In this scenario, we estimate that the employer is contributing an additional $1,150 in Medicare payroll taxes, not shown in the chart above. When combined, this family’s spending on health care and the money spent by their employer on their behalf totals $21,600.